Dec 24 Japan-based SoftBank Corp is in
final stages of talks with T-Mobile parent company
Deutsche Telekom about acquiring the U.S.-based
wireless carrier, the Nikkei news service reported on Tuesday,
citing anonymous sources.
SoftBank, which purchased 80 percent of Sprint earlier
this year, wants to pay for T-Mobile using shares of Sprint as
early as next spring in a deal worth more than $19 billion, the
report said. SoftBank aims to have Sprint buy the majority of
SoftBank has thought about a stock swap but now may have
added a tender offer and other kinds of deals to its list of
options, Nikkei reported. Deutsche Telekom prefers a cash deal,
the story said.
SoftBank is speaking to banks about borrowing funds for a
deal, according to news reports.
Sprint has been interested in combining with T-Mobile for
years and top executives from both companies have said that
consolidation is needed in the U.S. wireless market to create a
stronger rival against the biggest players, Verizon and AT&T.
A tie-up between Sprint and T-Mobile is expected to draw
regulatory scrutiny, experts have said.
Shares of T-Mobile rose 21 cents or 0.7 percent to $32.06